From Newsgroup: rec.arts.tv



Netflix backs down, Paramount now likely to acquire Warner Bros.
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Paramount is now on track to acquire Warner Brothers Discovery,
as Netflix has announced it will not provide a competing offer
to purchase the studio.

Warner Bros. Discovery has been working to find the right buyer
for months now. In October 2025, it was even reported that
Apple TV was among the companies in discussions with Warner Bros.
executives regarding a potential purchase agreement.

Two months later, Netflix emerged as the top contender and
potential new owner of Warner Bros. Discovery. However, the
enthusiasm was short-lived, as Paramount offered to buy the
venerable Warner Bros studios and its extensive library for
$31 per share, as part of an all-cash deal.

Netflix, meanwhile, was only willing to pay $27.75 per share, and
its deal was not all cash. On Thursday, the streaming company
revealed it would not be increasing its bid for Warner Bros.
Discovery to match Paramount's offer.

In a statement available on the Netflix website, co-CEOs Ted
Sarandos and Greg Peters said that their original offer to buy
Warner Bros. "would have created shareholder value with a clear
path to regulatory approval." However, they added that "at the
price required to match Paramount Skydance's latest offer, the
deal is no longer financially attractive."

Paramount came out with a statement of its own, detailing the
specifics of its planned Warner Bros. Discovery acquisition. The
studio also said that it will "engage constructively with WBD to
deliver the benefits of Paramount's proposal to WBD shareholders,
the creative community, and consumers."

Along with the $ 31-per-share fee, Paramount has also agreed to
pay a $7 billion fee if the transaction does not close due to
regulatory issues. Additionally, Paramount is willing to cover a
$2.8 billion termination fee, which Warner Brothers would have to
pay to Netflix to end its existing Netflix merger.

Warner Bros. Discovery Board of Directors recognized Paramount's
bid as a "superior proposal" under the current Warner Bros.
merger agreement with Netflix.

Overall, it looks as though Paramount will buy Warner Bros.
Discovery, unless regulatory compliance issues prevent the deal
from going through. Comcast and Amazon were also in the running to
purchase Warner Bros. at one point, but it appears as though
neither has submitted an offer matching Paramount's.

Regardless of the outcome, Apple most likely continue to work with
Netflix, according to the iPhone maker's services chief, Eddy Cue.
On Thursday, Apple also announced that Netflix's F1 'Drive to
Survive' would be available to stream on the Apple TV platform.



<https://appleinsider.com/articles/26/02/27/netflix-backs-down-paramount-now-likely-to-acquire-warner-bros>





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